Have You Noticed How Many Homes Are Selling for Over $1 Million? Here Are the Stats.

We Realtors are as surprised as anyone at the increase in home values, especially of the most expensive homes. The charts below speak for themselves. Not only are sales of million-dollar homes in Denver and Jefferson County increasing, but the time it takes such homes to go under contract has continued to go down.

Not shown in these charts is 2019, since we’re only 9 months into the year, but the number of sales for both counties thus far in 2019 is already about to surpass the sales for all of 2018, and the median days on market (DOM) is about the same as last year. Evidently, the number of sales over $1 million will continue to increase, while the days-on-market line may level off.

The number of sales of Denver homes over $1 million thus far in 2019 is 739, vs. 746 for all of 2018.  The yearly increase in million-dollar closings has ranged from 9.2% to 40% over the past 5 years.

Those are the statistics for all of Denver. The figures for Denver’s four quadrants (divided from each other by Colfax and Broadway) present differing market trends, as follows:

It’s worth noting that two of the quadrants — northwest and southwest Denver — have already recorded a big increase in sales for 2019 over all of last year. And the other two quadrants are likely to top last year’s sales, since there are currently enough homes under contract to make that happen. At press time there were 125 Denver homes over $1 million under contract — 78 in southeast Denver and 13 in northeast Denver, most of which can be expected to close in coming weeks. There are another 323 active Denver listings over $1 million, many of which could also sell by year’s end.

The number of Jefferson County homes over $1 million sold in 2019 through press time was 235, vs. 242 for all of 2018.  The yearly increase in million-dollar closings has ranged from 21% to 53% over the past 5 years. Those, however, are the statistics for all of Jefferson County. The figures for the four biggest Jeffco cities present differing market trends, as follows (Note: Golden stats are within city limits only):

Only Wheat Ridge is lagging in this trend of massively increased sales of Jeffco homes for over $1 million.  The other three cities are beating the county trend. The days on market for these four cities varied significantly from each other and from the Jefferson County statistics. 

For example, those five sales last year of million-dollar homes in Wheat Ridge had a median DOM of 298, while the 20 homes that sold last year in Lakewood had a median DOM of 25 and the 5 homes that sold in Golden had a median DOM of 89. The Arvada homes had a median DOM of 21 days.  The 15 Arvada homes that have sold thus far in 2019 have a median DOM of just 14 days.

While the market for lower-priced homes does show signs of slowing, the market for homes over $1 million seems only to be strengthening. This may be a reflection of the Trump tax cuts which are known to have helped the ultra rich more than those in lower income brackets. That discrepancy has also evidenced itself in the rates for jumbo loans, which have been lower in recent years than the rates for conventional mortgages. When I checked on Sunday, Wells Fargo was quoting jumbo loans at 3.5% and conventional loans at 3.625%.

There’s a lot of uncertainty in the world right now, especially in the Middle East and on the domestic political scene, and I’m frankly surprised that the markets remain so stable.  It will be interesting to see how things shake out in the coming months and how that impacts the real estate market.

Golden Real Estate’s Agents Featured on RatedAgent.com

The website RatedAgent.com stands out from other websites which provide agent ratings, because it only surveys actual past clients shortly after the closing of real estate transactions. Because of that, there are no phony reviews or reviews by people who haven’t actually done business with the agent in question.

Not all brokerages pay the company that operates that website to survey its buyers and sellers, but we’ve been doing so for nearly a decade. That provides a lot of data which you can trust for each of our broker associates.

You can use the website to search for agents by name or to look for agents in specific cities.  It’s the first place I go when asked to recommend an agent for a buyer or seller outside our primary service area of Metro Denver.

If, for example, you search “Golden CO” on their website, you’ll see that all nine Golden Real Estate agents appear in the top 15 agents.  If you search other cities, some of us also show up.  (I myself am listed first in Golden, and second in Arvada.)

Check it out! It’s a valuable resource. It will give you comfort in asking any Golden Real Estate agent to help you buy or sell.

3 Open Houses this Saturday from Golden Real Estate

Andrew Lesko will be holding open his listing at 916 Homestake Drive in the Kinney Run townhome community this Saturday, noon to 2pm.  A narrated video tour with drone footage is at www.GoldenTownhome.info. This is a great property! Listed at $537,000.      

I’ll be holding open my 4-bedroom ranch-style listing at 9379 S. Jellison Way in Trailmark this Saturday, 11am to 1pm. A narrated video tour with drone footage is online at www.TrailmarkHome.info.  Listed at $598,900.

Chuck Brown will be holding his listing at 6404 Benton St. in Arvada open this Saturday, 11am to 2pm.  More than just a 3-bedroom, 2-bath home on a 2/3-acre lot (which could be subdivided), it also includes two detached 2-car garages, one of which is part of a 1,900-sq.-ft. workshop/studio! See the video tour at www.ArvadaMasterpiece.info.  Listed at $725,000.      

Cars Have Titles Which Are Transferred Upon Sale. Homes Do Not. So, What’s a ‘Deed’?

One of my sellers whose closing is fast approaching called me in a panic last week because she couldn’t find the deed to her house, which she thought she’d need to bring to closing.

I explained to her that a deed is not the same thing as a title, and that all she needs to bring to closing is her driver’s license or similar ID to prove who she is.

In fact, there is no “title” to her house. A deed is a legal document which transfers property. It is not proof of ownership. When a deed is recorded by the county clerk, it results in the county changing its records to reflect the new owner’s name, and the deed, once recorded in the clerk & recorder’s database, is then mailed back to the new owner. At that point, it doesn’t matter if you lose or misplace your deed, because the county has the proof of your ownership.

This is different from how motor vehicles are transferred, where you have a title to your car and must sign it over to the new owner when you sell your car. If you lose your title, there’s a procedure for replacing it, but you need that physical title to sell your car.  Not so with real estate.

Many people share my seller’s misunderstanding about deeds And there are different kinds of deeds. The deed used most often is a “warranty deed,” meaning that the seller warrants that they are the owner of the property and, with that deed, transfer it to the buyer.

There are “general” and “special” warranty deeds. I won’t go into the difference here, since the purpose of title insurance is to provide the buyer with a guarantee (regardless of the type of deed) that they are receiving the property free and clear of any claims of ownership or indebtedness by anyone other than the seller.

When a property being sold is in the estate of a deceased seller, it is sold by the “personal representative” of the estate (called an “executor” in other states), and the property is transferred via a “personal representative’s deed.” If the property is purchased at a foreclosure auction conducted by the Public Trustee (who enforces the “deed of trust” securing the mortgage for the lender), then the transfer is via a “trustee’s deed.” 

Whichever kind of deed is used, the fact remains that the deed only exists as evidence of the sale, and it does not need to be presented ever again.

I am not a lawyer, and I am providing this information as I understand it from real estate classes and from my experience as a real estate professional. You’ll want to engage a lawyer if you require further explanation, and I, like any real estate licensee, can refer you to one or more real estate lawyers.

My Advice on Buying Solar Panels and Electric Cars

By JIM SMITH

In the wake of last Saturday’s green homes tour and electric vehicle showcase, I’d like to share the advice I give to people who ask me about investing in solar power and buying an electric car.

As much as I wish it weren’t so, you will not recoup what you spend on solar panels, insulation and other green home improvements for your home when you sell it. As with any improvement, you will receive a percentage of what you spend, but it will not be anywhere near 100%. Only make those investments because you’ll enjoy the comfort and savings for at least a few years — and because it’s the right thing to do.

Regarding electric cars, I recommend buying a used EV. The used car industry has yet to properly value used EVs. Currently electric cars are devalued the same way gas cars are devalued, which doesn’t make sense. Consider a 4-year-old gas-powered car with 100,000 miles on it. You can probably get it for half its original price, because so many components, such as transmission, timing belt or fuel pump, are worn and might fail. But none of those components exist in EVs. There are under 50 moving parts in a Tesla. The same age EV is simply as good as new.

A used Tesla built before mid-2017 is an especially good deal, because lifetime free supercharging transfers to the buyer (unless purchased from Tesla). I’ve seen many Tesla Model S cars for sale online under $40,000, less than half their original price. Here’s one I found just now on autotrader.com….

Lakewood Townhome Just Listed by Andrew Lesko

Just 2 blocks from Lakewood’s Bear Creek Greenbelt and just minutes to Kipling and Highway 285, this bargain priced townhome at 3129 S. Estes Street is located in the San Francisco West townhome community offering a great opportunity for the buyer looking for a property that needs updating and reaping the upside value potential. Although it would benefit from updating, this 2-BR, 1-bath townhome is quite livable in its present condition. It’s perfect for a first-time buyer or for an investor looking for an easy, low-maintenance rental property. A similar 2-bed/1-bath unit in the same community is listed at $260K. Visit www.LakewoodTownhome.info for more info and pictures. Bring your creative mind to the open house Saturday, Oct. 12, noon to 2 pm, or call Andrew at 720-710-1000 for a showing.

Price Reduced on Rare Ranch Home in Littleton’s Trailmark

You’ll love this ranch-style home at 9379 S. Jellison Way. Not only has the price just been lowered by over $21,000 to $598,900, but Golden Real Estate is offering totally free moving (within Denver metro area) to help move this listing. Call 303-525-1851 for details! View a video tour at www.TrailmarkHome.info, or come to our open house this Saturday, Oct. 12th, from 11 am to 1 pm. At this price, this home won’t last long!